Theoretical capacity and practical capacity are demand-based capacity measurements.

Question

Quizplus · Accepted Answer

Theoretical capacity is a theoretical maximum capacity measurement of a system, production process, or service, assuming no downtime or constraints. Practical capacity, on the other hand, considers realistic factors such as maintenance, downtime, and other constraints, and represents the maximum capacity that can be achieved in practice. Therefore, neither theoretical capacity nor practical capacity are demand-based capacity measurements.

Theoretical Capacity and Practical Capacity Are Demand-Based Capacity Measurements